Eye on Retail: Sears enters new partnership with Amazon
Sears Holdings Corp. is taking its relationship with Amazon to a new level
Sears Holdings Corp. is taking its relationship with Amazon to a new level.
The department store retailer said that Sears Auto Centers will offer full-service tire installation and balancing for customers who purchase any brand of tires on Amazon.com. The service initially launched at 47 Sears Auto Centers in eight metropolitan areas, including Atlanta, Chicago, Dallas and New York. It will be rolled out to all 400-plus Sears Auto Centers nationwide during the coming weeks.
The deal is seen as a win-win for both retailers. It gives beleaguered Sears a new revenue stream and gives Amazon a way to serve up in-store services even though it lacks a national network of physical retail.
The partnership reflects the growing relationship between Sears and Amazon, which started when Sears began selling its Kenmore appliances on Amazon in July 2017. The brand is now distributed nationally on Amazon with over 250 products. And since December, select products from Sears’ DieHard brand have been sold on Amazon.com, with the lineup steadily expanding.
The collaboration means that Sears Auto will become the first nationwide auto service center to offer Amazon customers the ship-to-store tire solution integrated into the online retailer’s checkout process. To take advantage of the service, Amazon customers select their tires, the Sears Auto location and their preferred date and time for the tire installation. Sears will then contact the customer to confirm the appointment.
In addition, as part of the deal and for the first time, Sears’ DieHard all-season passenger tires will be sold on Amazon.
More growth at M-D Building Products
Latest move is an acquisition of RCR International and W.J. Dennis.
Oklahoma City-based M-D Building Products is continuing its strategy of growth through selective acquisitions. The company purchased a majority of the assets of Québec-based RCR International, Inc. and its Chicago-based wholly-owned subsidiary, W.J. Dennis.
RCR International and W.J. Dennis — in existence since 1900 — produce and distribute weather-stripping, insulation components, screening, snow brushes, squeegees and other hardware & seasonal products for customers across North America.
One category was not part of the transaction: carpet and rug runners.
Financial terms of the deal were not released. Lincoln International served as financial advisor for RCR International and W.J. Dennis, which were under Canadian and U.S. Bankruptcy Protection.
“M-D is pleased to acquire both the RCR and W.J. Dennis full product lines, including the established brand name (Climaloc), inventory, patents and intellectual property,” said Loren Plotkin, chairman and president of M-D Building Products.
According to M-D, the move diversifies its customer base and expands its products and expands its presence — “most prominently in the Canadian market where we see significant growth potential,” said Plotkin.
“M-D Canada looks forward to expanding our business in the Canadian Market with the addition of RCR’s weatherization and broad product offering of screening, snow brushes and ice scrapers, squeegees and cleaning tools,” said Joe Comitale, president of M-D Canada. “RCR is a very well-respected manufacturer and distributor in Canada. In addition to bringing on the RCR products, this acquisition will improve our competitiveness and bring about synergies to drive operational efficiencies in both our Canadian and U.S operations.”
Jeld-Wen nears new CEO hire
Interim, and former CEO, Mark Hachigian hints at why Mark Beck may have left the company.
Since the unexpected departure of former CEO Mark Beck this past February, Jeld-Wen has been searching for a new top executive.
According to interim CEO Mark Hachigian, the window and door manufacturer is close to making a hire and has narrowed down its candidates in recent weeks. Hachigian delivered the update during the company’s recent first quarter sales and earnings conference call.
“We are down to 10 candidates with five members of the board interviewing them,” Hachigian said, noting that the company is making progress and a new CEO should be hired within the next two months.
Hachigian, the former CEO of Jeld-Wen, alluded to why Beck may have left the company three months ago and pointed to a high turnover rate at the company’s Charlotte, N.C. headquarters. The interim CEO also noted the incomplete reorganization plan that was initiated at Jeld-Wen’s Florida operations prior to Beck’s departure.
“When you look at 2017, you see that our problems were all self-inflicted,” Hachigian said.
Despite what may have transpired at Jeld-Wen offices, the company posted sharp first quarter 2018 results earlier this week. Jeld-Wen reported net revenues increased nearly 12% to $946.2 million for the quarter and had a net income of $40.3 million for the quarter, compared to net income of $6.4 million in the same quarter last year.